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Its not the largest or most expensive home in the development either. Not even close.

I understand lenders are being cauitious these days, we all are! We bought our first home in 2003 with a 5% deposit. I planned for more this time, but not 20%. It seems that the 20% is required if you use there lender or not. Maybe I am just a little confused, but i mentioned it to our agent and she said that something they are pretty strict with.

Thanks for all the help... we have been looking a LONGGGG time and have finally found something we like.

Are you sure about this? Contracts do not typically trump law unless there is something specifically in the law that says otherwise. If this were the case there would be no point in even making the laws if companies could still do what they wanted anyway.

Actually, I think it is the other way around... if two parties agree to different terms (such as in this case) and agree to it in writing, that would trump the state law. I have seen this happen in rental law... ie state law stated that rent could not be raised more than 5% per year when you go to renew your lease. But my sister agreed in writing to a $100/month increase, which was more like 10%. But it's perfectly legal because both parties agreed in writing.

As I stated we are in a relatively new Ryan community, less than 2 years old and we put 6% down which is I think is the average in this neighborhood. WOW 20% on a $500K home. Who has $100,000 they can just throw away if they can't close for some reason. I do know that the couple building next to us were relocated to another state with his job during construction and Ryan refused to give them their deposit back. That is also in their contract no refund of deposits.

We purchased a new construction home from Ryan last year. We signed the paperwork in February 2008 and then closed in July. When we signed the initial paperwork we wrote Ryan a check for $2k, and the remaining earnest money we paid them over the next 3 months only came to a grand total of 2% of the total purchase price. And we brought another 8% to the table at closing. So all told we paid 2% to Ryan in earnest money before construction was completed and purchased with 10% down.

I would think as long as you had a lender that had approved you for your purchase loan you should be good to go. My questions to you, SkiptheChimp are: Do you have your own agent - if so, what do they say? Also, are you going through NVR (Ryan's mortgage company) for your loan? If this 20% is through NVR, maybe you should look at other lenders.

Honestly though, I don't know much else - maybe Ryan has changed their policies - maybe they've started several construction projects and then have the buyers not be able to qualify for the mortgage. But 20% seems excessive for an initial deposit.

Play hardball, you tell them what you are willing to put down for earnest money. From your posts it sounds like you are reasonable and willing to put down some $$$. If they do not take it walk away and wait for them to call you back, which I feel confident they will. I know what it feels like when you finally find the home you have been searching for but doing things you are not comfortable with is the fastest way to make you regret that purchase.

I appreciate all the advice. We do have an agent and we let them know that 20% would be a killer. We didnt get a chance to follow up with the agent today, but plan on regrouping tomorrow. I feel a little better about them being a little more reasonable after reading all of this. We have been pretty cautious the whole time so it was just dissappointing when finally we are able to make a move and the large amount of the deposit needed was going to block us. Heck, 5% to 10% is still a heck of a lot of cash, but its a little more reasonable.
Anyone have advice on how to avoid useless PMI insurance? We paid it for about two years on our first house until we could finally get out of it... total waste of money.

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